Friday, May 04, 2012

MAS - Air Asia: The chicken and pig joke

Tony F and Kamaruddin Meranun is out. Dato Azman Yahya resigned from the Air Asia board. Supposedly he represents Khazanah's interest.

Rocky Bru here claimed Danny Nanny will eventually leave. So should the CFO and Head of Engineering from Air Asia.

Ahmad Jauhari aka AJ will have a free hand to run MAS. No more nonsense such as CEO for Long Haul and CEO for Short and Medium Haul.
It is obvious. The CEO for Short and Medium is in Tony F's market and truly friendly with him. He is also being given to take charge of aircraft financing, finance, MAS Sdn Bhd, etc. It is an insult to AJ as CEO to be made to look like a puppet.
And AJ, watchout for your sister. The staff are getting annoyed with her.

Big Dog here argued that collaboration is needed to face up to the "open sky" policy. The broad stroke looks fair but the taste has to be in the pudding. However, a series of possible JV mentioned made Syed Akbar here sceptical.

The Mole posed the question: Will the MAS-Air Asia CCF work? There is an old MBA joke from a lawyer classmate related to collaboration ...
The pig and chicken agreed to enter the breakfast business. The pig will supply the bacon and the chicken will supply the egg.

It's a wonderful arrangement. Bacon and egg for breakfast. Both thought they can do well and corner the market.

So they decide to do a Joint-Venture Agreement.

While reading through the draft agreement, the pig realised he will have to sacrifice himself to be made into bacon. The pig raised the issue with the lawyer and the chicken in a meeting.

The lawyer explain, "It's common in a Joint-Venture Agreement. One of you will get slaughtered."
To Mat Diah representing all the MAS Unions seeking input for their meeting with management tomorrow Saturday, be reminded of this joke. AJ wants to regain the trust of the staff. Give him a chance.

But ask what is Air Asia putting in all the planned collaboration, especially Joint Venture. Be wary of them. No "air liur" only. If they have no people, no expertise, no plant and machinery, and what ever, put money where their mouth is or tell Tony F to shut up.

Union should engage regularly with management. Give input and not be interested only on self interest matters. Save the company and the company will be in the capacity to reward you.

Remember that the rakyat that have supported them seek upon them and management to turn MAS around. They want MAS to continue to fly our Malaysian flag with pride. And return MAS back to it's glory days.

Sacrifices have to be done. There are few sacrifices in mind.

First, review the 10% ticket fare.

It is ridiculous that those retired MAS staff, no more working and contributing the company, are still given such privileges. The biggest abusers of this privilege are the former senior management and former members of the Board of Directors.

Look at the picture above of former glamorous but failed CEO Dato Fuad Dahalan in In Focus magazine. He failed as a CEO and destroyed the hope of ever a CEO to come from within MAS.

In the magazine, he gloated of spending much of his retirement traveling abroad. That must be the 10% ticket fare.

Also abusing their status to earn up-grades like buying economy ticket but flying business class or first class are the royals, especially the Negeri Sembilan and Pahang royalties. That should explain where many MAS Managers get their Datukship from. Really no class.

This has to stop. MAS cannot continue such privileges. Neither could they have half price for Government pensioners. They just can't afford it now.

Second, review back the role and cost of maintaining the Adviser. He has to be placed on the sacrificial altar.

Does he have any significant role in MAS? What advise has he given? Answer is none and none.

Tun Abdullah erred in his selection of CEOs and slept in the midst of the Airline Rationalisation Plan that became the root of MAS problem. He gave favourable treatment to Air Asia.

What is his gaji buta salary from MAS? It is heard that MAS had to absorb the cost of renovating his office in Putrajaya. What nonsense?

If he is so recalcitrant to stay on and has no shame, leak the information and let Donald Lim squirm to answer in Parliament. There is no reason to keep this man at all.

Voice it openly!

Third, MAS should not be sacrificed for the wealth accumulation of the Adviser's brother. Or is it the Adviser himself?

MAS should get caterer other than MAS Catering aka Tamadam aka Berahim, so that they have choices to pick to get the best price and product. Airport's KLAS is heard capable of doing that.

Find some loophole in the contract and make them compete. If there is none, use political muscle. Better still, open the book to MACC. The public would like to know.

MAS food service quality have dropped.

If Berahim cannot deliver, let their sales plunge and bleed. Otherwise, sell back to MAS for cheapo.

Forth, review back the outsourcing of IT. The invisible owner is believed to be a member of the board of MAS, that is Dato Azman Yahya.

Sacrifice him.

Make it be known publicly that the former Danaharta Chief had his hand in the cookie jar.

How can something so strategic and important be outsourced? It is like allowing their MIS leaked to outsiders. And it is like exposing the company operation to threat by outside party.

Fifth, review back Danny's new installed accounting system that centralised rather decentralised payment to suppliers and service providers globally.

Gila budak yang tidak ada pengalaman ini!

Does he not think of the consequence of payment to London suppliers having to wait for cheques from Kuala Lumpur?

Sacrifice the system and let him pay back the company from his accumulated salary.

Sixth, heard Panamera Deadwood quit. Good, he abuse his position to travel abroad, offer nothing of value to the organisation and undertaking academic pursuit at company's time, but kept getting promoted.

In MAS, there are lots of incompetent deadwoods taken in from the days of Idris Jala. There are lots of managers only managing 2 to 3 people. Some of these managers have attitude and no heart of human that none wants to be under them.

There senior managers with no managers under them. It is not a surprise to find AGM and GMs with only 20 staff under their authority.

Sacrifice these incompetent managers!

There has to be a certain number of people under a person to be assigned titles, especially those big and fancy titles. Comb through the organisation chart and they should find lots of them.

Seventh, union must sacrifice by cooperating with management to move to KLIA.

There is no two way about it. MAS cannot operate with offices all over the place from Subang to Kelana Jaya, Kuala Lumpur and KLIA.

However, if there is something to be made from Subang property development, MAS or Koperasi MAS must benefit from it.

Eigth, unions must sacrifice to help management to plug loopholes and wastage in the organisation, even how small or how big it is. All will add up.

Work together to cut cost and improve sales.

Union must work hand in hand to give feedback and help management in the running of MAS. No more us versus them attitude. That is colonial mentality.

In the case of corrupt Managers and Management, the union should report them to MACC.

Ninth, Danny had undertake indiscriminate cancellation of services like Middle East hub, Dubai, Buenos Aires and Indonesian points.

It was through hard earned effort to secure routes to Rome and South America via South Africa. The cancellation sacrificed the airline network and gave others the opportunity to fill the void.

Tenth, MAS has to be clear what name will be their battle cry to gather and lead the troop; MAS, Malaysia Airlines or Mas?

It can be costly for the airline to use different names in the same market or different market.

Sound like an idea coming from a boy who doesn't understand business. Sacrifice this idea to the bonfire.

That'll be all for now

The CCF must not mean MAS has to abandon all their plans and not Air Asia. Shell and Exxon can do JV for upstream but they do not close up their gas station for the other to enter.

Why did Khazanah did not pay any attention to MAS internal plans? True that MAS suffered due to lack of leadership and stewardship. Let's be honest, whose fault was it? The staff or the Government-owner? Both?

The Government and leaders had been hoodwinked by Tony Fernandez and his so-called success story that they refuse to hear the true professionals of the Malaysian aviation.

Air Asia was allowed have their way and no proper management team was put in place. Such occurrence must end immediately and the incompetent ones involved packed their bags and get sacrificed.

Up-dated: 11:00 PM


merry x mas said...


There too many little napoleon in MAS than the army itself. Get rid of them as well.

And please stop the MAS ( Mesti Ada Saudara ) mentality to hire new staff. Its part of reasons.

BTW Lufthansa - the Germany National carrier is planning to slash down 9,500 jobs soon - from top to middle in order to return to profitability.

Anonymous said...

MAS staff are all well connected and they can screw up plans not suitable to them.This point has never been address. When you have infinite government subsidy for any company that company will become too big to fail. MAS has become just that.

Government subsidy yes by all means. But those who accept government subsidy must be told 'one strike and you are out'.

Anonymous said...

MAS is an airline run like a Govt agency with workers running it like any Govt department and covered in deep shit by political kickbacks.

How to make money as an airline?

Why is it still listed in Bursa? Ingat investors Lembu ke?

A Voice said...

Anon 9:03

Thank you for your input. But these are only immediate issues to be addressed.

In my opinion, the issues you raised are long to intermediate ones.

Anon 9:14

Frankly, investors in the Bursa are mostly lembus.

They buy and sell shares without understanding what are they buying.

They hardly bother to understand the fundamental of the stocks.

They are not aware of the immediate challenges facing the company and its business.

They do not bother listening to professional advise and the so called professionals are usually equally blind.

They do not bother attending AGM or EGM.

They do not voice their agreement or disagreement with the way the company is run.

They only listen to rumours and believe in conspiracies rather than knowing the fact.

They only bother if their share price go up.

They only want a bull run so that makes them brainless and dumb lembu.

Kamal said...

You are wrong.The MAS union really the big problem for MAS.They try to protect 20,000 Dear wood MAS workers.

what Khazanah will do to put MAd under sec 176.Sell all the asset to the newco.Reemploy worker with new term.

Mas cannot operate under old co.They cant raise any credit from the bank.They are insolvent.MAS will started under new co.

MAS still need Tony F and Kamaruddin.They are good in negotation,buying planes ,parts and fuel.

I feel sorry for the UNION and unprodictive workers.

Anonymous said...

Exxon n mobil merged 10 years ago lah. But they still maintain esso n mobil stations
Yang kau cilok point ni from wee choo keong buat apa.

Anonymous said...

I agree very much with your point here. Tnny buy thing as if it is for his. So must get the best deal. But MAS who cares. The govt will supply the money. So how much I get the commision is the factor to decide.

A Voice said...


Whats your problem with me using wee's argument. Wee and us share informations. And not on MAS alone.

So they merged . . . The message and point driven remain

Can't you argue without hurling insults?

Suggest you get a psychiatrisy to examine your head.

You are probably a child abuser or was abused as a kid that you have problem being courteous

jack1960 said...

Hoodwinked by vested interest ....

Flawed practices/decisions permeating from policy makers ensures the presence of flawed cultures in any GLC. Lack of BOD independence is resultant of policy makers wanton need for power.

The presence of vested interest occurs when individuals or groups of individuals want to circumvent this flawed culture for their own advantage.

This is the key to this whole MAS mess, now made worse by AAsia/AAsia X.

High time to step back to see the impact of both carriers on strengthening KUL as a primary hub and BKI/KCH as secondary hubs. The country has invested billions in creating world-class infrastructures, don't let this saga waste more tax payers money.

Operationally, AAsia/AAsia X are way behind in its infrastructure, engineering & maintenence, crew training etc. Way behind because, it was deemed non-revenue earning infrastructure. So it was mainly outsourced but now, it has grown too big in fleet numbers. Solution, piggyback on MAS.

It took decades & billions for MAS to develop such infrastructures, time & billions AAsia/AAsia X don't want to spend. Now the policy makers want both to collaborate based on the 300 odd A320/A330/A350 aircraft orders by AAsia/AAsia X. Pure nonsense.

Vested interests/political hegemony will cost the country dear. Independent leadership by total integrity will reap bring bountiful rewards to the country.

With that, MAS will have to undergo painful hard truths in order to enhance its world-class capabilities which most Malaysian s take for granted but also gripe upon from time to time.


Anonymous said...


AJ is a Paperweight...There will be worse to come!!

MAS Needs a strong leader at the Helm now that Tony is out!!

Joe Black

Anonymous said...

MAS treats economy passengers like monkey..they give u peanuts in short haul flight..even by giving peanuts..they are lossing....lately..the sterwadess hands out 1 packet each on peanuts to the monkey passengers...before this..u can grab 2 or 3 they are cost they have to ration the peanuts that they gave to the paying monkeys...

Gaius Vinius said...

Just what are the "painful hard truths" that MAS must face up to, acknowledge and fix?

If we are looking at the perilous state of "flagship" national carriers, consider the travails of Air India. An exasperated Indian minister has threatened to shut it down if it doesn't get it's house in order.

And why blame AirAsia for running a lean, efficient operation when the pendulum in the Asia-Pacific region is swinging against premium full-service airlines and towards low-cost carriers?

The passenger number trend for the leading Asian LCCs show this.

Anonymous said...


These pro AA cyber troopers refuse to accept the fact that AA is not
an honest and business like partner to be in collaboration with.

They are crooks! MAS staff and managers knows it and rejected them.

Only the crooked and malicious outsiders in management and owners are in awe with crooked Tony Fernandez.

Anonymous said...


You missed out on the pilots union and their expenditures. They are one of the biggest spender within MAS's empolyees. 1st class seat and 5 stars hotel x the number of pilots x days of layover x guaranteed bonuses(MAS is obliged by this one union)= ??

Much Obliged,

My Say